Sony moving forward with plan for entertainment IPO - Report

PlayStation maker reportedly hires financial companies Morgan Stanley and Citigroup to assist in exploring possibility of splitting company apart.

Sony has brought on financial firms Morgan Stanley and Citigroup to help the PlayStation maker consider a proposal to split the company apart, Bloomberg reports.

Billionaire hedge fund manager Daniel S. Loeb--who owns a 6 percent stake in Sony worth about $1.1 billion--has proposed that the company spin off its entertainment business by selling as much as 20 percent of its assets in an initial public offering.

This move would allow Sony's electronics division--which includes the PlayStation business--to thrive, according to a letter Loeb and Third Point LLC sent to Sony earlier this month.

"To maximize Sony's overall success, we believe the Company should change the structure of its ownership of Sony Entertainment," Third Point said at the time. "Doing so will strengthen Sony by reducing its burdensome debt, thereby providing additional resources and capital to focus on revitalizing the resurgent Sony Electronics."

Sony CEO Kaz Hirai has said the company is considering Loeb's plan, though "it's only a start."

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
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122 comments
hull20004
hull20004

you know what should come way before the consoles. Half-life 3
we have'nt forgotten Gabe

Sabinsnake
Sabinsnake

I think Microsoft needs to focus on making software, instead of game consoles, cause they dunno how to run a business when it comes to consoles. they charge for online play, party chat and to use Netflix, while those features are free on PS3/PS4, Wii/Wii U and PC. and now here comes the Xbox One, with full DRM utilization, can't take out the hard drive to put your own in with more space, you have to use an external HD if you want more space, you have to pay a fee just to let a friend play your game(s) on their system, and from what I've read, Microsoft and the FBI have the power to spy on you through the Kinect camera and on Skype, by reading your messages. with these features, I don't see how anyone would want to buy a Xbox One to subject themselves to all this BS... Microsoft is really shooting themselves in the foot!

aceman48
aceman48

I don't want another 500 dollar dvr ihave one all ready with Comcast and in the ghost footage did Microsoft really show real game footage or was it the same old cinematic crap

aceman48
aceman48

so with the xbox one having the direct x11 tools which are the same tools as the pc how will the PlayStation 4 do with its open gl  which one will have the best tools for game makers to make the best games 

xanal_juicex
xanal_juicex

Fuck Sony I am tired and Sick of their Shit! And Dont get me started on microsoft Greedy fuckers!

Sony Stop Price Hiking the Ultra HD T.V s for 5000.00  Look Sekie They Release a 4k Ultra HD Tv 50 Inch for 1299.99 Go To Amazon its on sale and they do Not all that crap software we dont need or want or use and they charge a premium Greedy Basters!

HAMMERCLAW
HAMMERCLAW

Strange; it's the Electronic division that's in-the-red, not the Entertainment division, which is solvent. Which one is divesting itself of which?

stanknuggetz12
stanknuggetz12

Sony needs money. They had to sell thier HQ building in New York!!! If I was Sony I would want a cut of used game sales.

juelzberetta
juelzberetta

don't do it Sony. you don't see Disney splitting up companies, just associating their companies with each other and creating synergy or some crap. pump out more movies, big blockbuster ones, not just indies and low budgets. more cartoon movies that make money. and what the hell is with their tvs and other electronics costing so damn much? make some mid-price range tv's along with your $8,000 4ks. make a good damn phone and tablet already and keep em coming along with laptops and transformer type tablets. i know you can do it, you're designs and technology is sick! create good software for it that can compete with the galaxy lines and apple. partner with google and put the Android OS on your Playstation line along with the Play Store and make Apps compatible for the Vita, PS3 and PS4. maybe even partner with Google and make a PC OS, woah!  that'll help you compete with Microsoft and their Xbone. basically do all the things you do with your game studios and having all that exclusive stuff that makes people want to stick with Playstation. you guys need to pull a takeover! good luck

starjay009
starjay009

I think SONY is really worried about their American presence. The plan does make sense from a strategic point of view but I think SONY needs to wait until the PS4 shines in North America. Honestly, they can never say that the PS3 did well over the X360 last gen. Also, I guess this whole video game entertainment has become synonymous with SONY. Now people equate SONY with the PS everywhere. So it does make sense. 

crabbyprime
crabbyprime

For those that don't know Daniel S. Loeb is the guy who shook up Yahoo over the last two years. He is know as being an 'activist investor'. In other words he will fight tooth and nail to change a company in order for for his investment firm to make more money. Sometimes (like in the case of Yahoo) it's a good thing.

Here, I'm not totally sure. Sony is a completely different beast. But there could be financial benefits to Sony as a whole. From what I understand the two divisions are basically different companies already so their might not be that much of a change.

tionmedon
tionmedon

buy sony M$ needs the entertainment...............fap it..........

hystavito
hystavito

The Japanese were never much for more specifically focusing on certain businesses and just doing that alone.  Many large Japanese companies have all kinds of divisions that have absolute nothing to do with the others.  I don't know if that's a cultural thing, or if it's just how it played out.  I also wonder if it was like that before the end of WWII, or if it was something that happened more after.  It's certainly very different from the style of American business.

edant79
edant79

psssh, just dump it all on a credit card....it'll be fine.

experience_fade
experience_fade

The only article not to get a thousand comments.

Why? Quotes like, "Doing so will strengthen Sony by reducing its burdensome debt, thereby providing additional resources and capital to focus on revitalizing the resurgent Sony Electronics."

CWEBB04z
CWEBB04z

Here's what I read. Considering, and "its only a start" ...

Darkside1923
Darkside1923

Even if they do this they still be part of Sony still. There just be two part of sony that all .

DJKrayz_basic
DJKrayz_basic

billionaires who know nothing about gaming..  share the wealth, buddy...

Zxar07
Zxar07

Geez what's with GS and misleading titles these days, for those that didn't read the article, they aren't splitting the company. It's only been considered.

blackace
blackace

It's better then selling their HQ buildings, I can tell you that.

Cronicx-
Cronicx-

Wait I thought like Sony TV's and stuff,  in a way, were entertainment? What's in their entertainment section of the company?

vforvitiello
vforvitiello

looks like disney will be purchasing columbia to get their marvel movies back.

vforvitiello
vforvitiello

this is a good thing, much like disney closing down lucasarts. 

HowlPendragon
HowlPendragon

Title to this article is pretty inaccurate. "Moving forward" with something implies it is going to be done, not "considered"....

Shango4
Shango4

Is this a good thing?

DarkNeoBahamut
DarkNeoBahamut

All those resources they spent trying to unify everything with the SOE (including PSN) for nothing....

Redsyrup
Redsyrup

Together we stand. Divided we fall.

callmeavis
callmeavis

I'd watch where Mr Loeb closely. It could be that he see's Sony Electronics as a Huge liability moving forward and wants to protect his investment by retaining a majority in Sony Entertainment and dumping or taking a very small position in the Electronics side.  That way if the gaming/electronic space dies it can be sold off and not have a negative effect on his investment in Entertainment. tho I'm probably just a bit to cynical and bitter.

Super_Tramp
Super_Tramp

I know this isn't the place for it... but anyone know where i can watch that DARK gmeplay footage (by Kalypso)? I click on the link and it just sends me back to the gamespot mainpage.

Monsta1217
Monsta1217

I'd love to see a company like sony thrive for greatness, but something about that guy just seems so gosh darn shady (Daniel S. Loeb)

HonorOfGod
HonorOfGod

Wow gamespot is superb on my iPad <3!!!

ScreamDream
ScreamDream

This might be a good thing. We might see another game crash like the 80's if PS4 also has DRM.